What are the advantages disadvantages of being a charity vs non profit making organisation in terms of VAT,Tax,Regulations,etc.
Mihai Dascalescu
Replies (2)
Please login or register to join the discussion.
Give us a clue
I suggest this is too general a question. There are too many possible organisations to give a full answer.
Generally Charities cannot reclaim VAT paid.
(but for example listed places of worship can get a grant to reduce the effective rate of VAT to 5%).
Charities may find it is easier to show their activities are directly related to the charitable purpose and avoid tax. However depending upon the nature of organisation activities may not be a trade.
There are charity regulations which some organisations may want to avoid.